\nDear Valued Shareholders,\n<\/p>\n
\nAs your Founder, Chairwoman, and CEO, I write to you today with clarity, conviction, and optimism about the future of DDC Enterprise (NYSE: DDC). The past week has been one of unprecedented volatility in global markets, and our stock was not immune to these forces. Last Friday, amid a broad market selloff and trading below $0.10 per share, the NYSE-American halted trading of our shares. While such market movements are disconcerting, I want to assure you that your Board and leadership team acted decisively to safeguard shareholder value.\n<\/p>\n
Proactive Measures to Strengthen Our Position; Reverse Stock Split
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<\/b>Over the weekend, the Board unanimously approved the previously shareholder ratified 1:25 reverse stock split (the \u201cReverse Split\u201d). This action is designed to elevate our share price to a more acceptable trading range. We anticipate that the trading halt will be lifted and our shares will start trading post-split on April 21, 2025 under the current symbol \u201cDDC\u201d but with a new CUSIP.\n<\/p>\n
Resilience Amid Macro Uncertainty
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<\/b>Recent headlines about tariffs and geopolitical tensions have created noise in the market. Let me address this directly: DDC is well-insulated from these risks. In 2024, 80% of our revenue came from China\u2019s domestic market where we produce and sell locally. Our growing export business is focused on Southeast Asia\u2014not the U.S.\u2014further shielding us from tariff-related disruptions. In addition, our recently announced Joint Venture in China \u2013 with committed net profit of USD 15 million over 5-years\u2014will accelerate growth in our core market. While the U.S. contributed 20% of revenue last year, we expect the U.S. segment to remain a smaller, stable contributor with a separate U.S. domestic supply chain as we also pursue growth opportunities in our Asia markets.\n<\/p>\n
2025: A Transformational Year Ahead \nThese initiatives strategies will enable us to deliver shareholders value, even in an unstable macro environment.\n<\/p>\n More Information on the Reverse Split<\/b><\/p>\n \nThe shareholders of the Company approved the Reverse Split at the Company\u2019s Extraordinary General Meeting of Shareholders on November 29, 2024. In connection with approving the Reverse Split, the Company\u2019s shareholders granted authority to the Company\u2019s Board of Directors (the \u201cBoard\u201d) to determine, at its discretion, a ratio within the range of no split to 1-for-25, at which to effectuate the Reverse Split. The Reverse Split was approved by the Board on April 4, 2025.\n<\/p>\n \nAs a result of the Reverse Split, every 25 pre-split Class A Ordinary Shares outstanding will automatically combine into one new Class A Ordinary Share without any action on the part of the holders and with a change in the par value per share from $0.016 to $0.40. The Reverse Split will proportionately reduce the number of Class A Ordinary Shares available for issuance under the Company\u2019s incentive compensation plan and proportionately reduce the number of Class A Ordinary Shares issuable upon the exercise or conversion of stock options, warrants, and restricted stock units outstanding immediately prior to the effectiveness of the Reverse Split.\n<\/p>\n \nThe Reverse Split reduces the number of the Company\u2019s outstanding Class A Ordinary Shares from approximately 79 million pre-Reverse Split shares to approximately 3.2 million post-Reverse Split shares. Pursuant to the prior shareholder approval, no fractional shares will be issued as a result of the Reverse Split. Fractional shares that would have resulted from the Reverse Split will be cancelled and returned to the pool of authorized but unissued shares.\n<\/p>\n \nNo action is required by the shareholders as the Class A Ordinary Shares are held in electronic book-entry form which will be adjusted to reflect the Reverse Split. Additional information about the Reverse Split can be found in the Company\u2019s Form 6-K filed with the Securities and Exchange Commission on October 31, 2024, a copy of which is available at www.sec.gov<\/a>.\n<\/p>\n A Final Note of Confidence \nThank you for your trust. My team and I are relentlessly focused on ensuring that 2025 becomes a landmark year for DDC\u2014and for you, our shareholders.\n<\/p>\n \nFor questions, contact our investor relations Jeff Ervin (jeffervin@daydaycook.com<\/a>).\n<\/p>\n \nSincerely,\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \n\/s\/ Norma Chu\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nNorma Chu\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nFounder, Chairwoman & CEO\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nDDC Enterprise\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n<\/table>\n \n\u00a0\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20250409744983\/en\/<\/a><\/span><\/p>\n
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<\/b>The current share price does not reflect DDC\u2019s progress or potential. Consider our recent milestones:\n<\/p>\n\n
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<\/b>Market fluctuations often obscure fundamentals. Today, DDC is stronger operationally, financially, and strategically than at any point in our history. Our China-centric model, fortified by strong local demand and regional exports, offers stability and growth in uncertain times. While I cannot dictate market sentiment, I urge you to focus on our execution: we are controlling what we can, with urgency and precision.\n<\/p>\n\n
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